GAP BUYS CHILDREN’S FASHION RETAILER JANIE AND JACK
Gap Inc. has purchased children’s fashion retailer Janie and Jack from Gymboree Group. Janie and Jack operates over 100 retail stores in the U.S. along with an e-commerce site offering apparel of outstanding quality.
Janie and Jack will continue to operate as a standalone brand based in San Francisco. The transaction was completed on March 4, 2019, with Gap Inc. purchasing Janie and Jack for approximately $35 million with an additional agreement to purchase the Janie and Jack inventory at cost plus additional fees and expenses.
“I am pleased to welcome Janie and Jack to the Gap Inc. family and to expand our portfolio into the premium kids and baby business,” said Art Peck, president and CEO of Gap Inc. “Janie and Jack has a strong and loyal customer following that complements our existing brands, with a clear path for growth ahead.”
“This is an exciting outcome for Janie and Jack, and we are incredibly pleased that our brand will continue to serve our customers with its unique modern classic aesthetic as part of the Gap Inc. family,” added Shelly Walsh, general manager of Janie and Jack. “We are thrilled to be joining another San Francisco Bay Area retailer who shares our passion for creating and providing high-quality clothing and delivering exceptional customer experiences. I want to thank all of our Janie and Jack employees for their hard work and dedication to building a strong brand with a bright future.”
This news comes as Gap Inc. just announced last week that it is splitting into two separate publicly traded companies. Gap Inc. believes that this spin-off of Old Navy will enable each company to maximize focus and flexibility, align investments and incentives to meet its unique business needs, and optimize its cost structure to deliver profitable growth.
The company also announced on Thursday that it plans to restructure its specialty fleet, including the closure of about 230 Gap stores over the next two years. Gap estimates an annualized sales loss of approximately $625 million as a result of these store closures.
